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Pavel [41]
3 years ago
13

What is the income effect?

Chemistry
1 answer:
iris [78.8K]3 years ago
3 0

Answer:

Explanation:

the income effect is the change in demand for a good or service caused by a change in a consumer's purchasing power resulting from a change in real income. This change can be the result of a rise in wages etc., or because existing income is freed up by a decrease or increase in the price of a good that money is being spent on.

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